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Article
Author(s)
Faith Muthoni Kibe, Paul Amolloh Odundo
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DOI:10.17265/1537-1514/2016.08.001
Affiliation(s)
Faith Muthoni Kibe, master of project planning and management, Department of Educational Communication and Technology, Universitity of Nairobi, Nairobi, Kenya.
Paul Amolloh Odundo, prof., Department of Educational Communication and Technology, Universitity of Nairobi, Nairobi, Kenya.
ABSTRACT
Adoption of Internal control on Financial Application Systems (FAS) improves procurement management process by raising efficiency through reduction of pilferages. An institution that has well set internal controls is likely to have benefits brought by transparency, accountability, and usage of available resources. Organizations adopting use of FAS in Internal control (procedural, operating, periodic, and feedback controls) in procurement management enhance transparency, accountability in the procurement process. However, issues arise from non users of FAS in mismanagement of funds reported delay in procurement process. Benefits have not been documented and schools are still susceptible to frauds and malpractices associated with manual functioning of procurement management. The study assessed influence of internal control in Financial Application Systems on procurement management (PM) at SOS Eldoret, Uasin Gishu. The study employed census research design with target population of program director, 10 board management committees, 16 finance officers, and 52 teachers of Hermann Gmeiner School (HGS). The study employed structured questionnaire and interview for data collection. Analysis was obtained through classifying and tabulation of data. Internal control amongst which procedural control had more influence on procurement. Findings revealed that: timelines, planning, pre-qualification, and payment manipulation were curbed in procurement process through use of well set procedures and guidelines. However, operating controls were not adequately utilized in procurement since the institution did not perform fraud risk assessment which only identifies fraud and loss using set controls. Periodic controls in procurement management were found to monitors inventory on periodic basis to ascertain delivery frequency. The study recommends that HGS developed policy on management of internal controls of the FAS to account for procurement processes. Right persons recruited to run the system effectively and efficiently. School management to customize feedback control to enhance monitoring and evaluation of procurement process.
KEYWORDS
internal controls, procurement management, operating controls, periodic controls, feedback controls, efficiency and transparency, periodic review control, school management
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